I have a guaranteed amount of money coming in each month from SS and a pension. I do not need to take money out of my portfolio to make ends meet. Does this mean I can be more risky or less risky in my AA? After doing a lot of reading here, I'm still uncertain about this. Thanks for the help.

Bagiocop wrote:I have a guaranteed amount of money coming in each month from SS and a pension. I do not need to take money out of my portfolio to make ends meet. Does this mean I can be more risky or less risky in my AA? After doing a lot of reading here, I'm still uncertain about this. Thanks for the help.

It means both. You can afford to take the risk, but you don't need to take the risk.

Bagiocop wrote:I have a guaranteed amount of money coming in each month from SS and a pension. I do not need to take money out of my portfolio to make ends meet. Does this mean I can be more risky or less risky in my AA? After doing a lot of reading here, I'm still uncertain about this. Thanks for the help.

It means both. You can afford to take the risk, but you don't need to take the risk.

Yes, exactly. but at this point one should back up and consider what one's objectives for one's wealth might be. Do you want to do more than make ends meet? Do you intend to leave wealth to someone else? Would you like to set up a trust to benefit someone or a cause?

In addition one should think beyond making ends meet today. Do you still anticipate that your income will be adequate at some time in the future if your health would fail, when you need assisted living, and so on.

I think the response that said you could take on more risk, but don't need to was very intelligent. That said, an alternative view would be If you don't need the money in your lifetime, your investing for your heirs. How old are they? Maybe you want to invest based on their age in bonds rather than your age in bonds. You need to decide which view you feel comfortable with. There isn't really a right answer. Dave

The simple answer is that you CAN be more risky if you choose to do so because losing a good share of the money wouldn't affect your ability to provide for yourself. If your are investing specifically for your heirs, then I would go with something at the high end of the moderate range, 60% equities and 40% bonds.